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MI

MNTN, Inc. (MNTN)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue rose 25% year-over-year to $68.5M and Performance TV revenue grew 35% to $67.8M; gross margin expanded 700 bps to 77% .
  • GAAP net loss was -$26.2M, driven by ~$23.0M one-time IPO-related charge and $26.4M loss on extinguishment of convertible notes; Adjusted EBITDA nearly doubled to $14.5M (21% margin) .
  • Company ended Q2 with $175M cash and no debt; Q3 guidance: revenue $69.5–$70.5M and Adjusted EBITDA $13.5–$14.5M .
  • Results exceeded S&P Global consensus: revenue by ~$3.9M and normalized EPS by +$0.13; Q3 revenue guide sits near consensus ($70.1M)*. Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Performance TV traction: “Second quarter Performance TV revenue grew 35%…to $67.8 million” with “continued positive response to the Company's AI-powered MNTN Matched product” .
  • Strong margin and profitability: Gross margin reached 77% (from 70% YoY) and Adjusted EBITDA rose 92% YoY to $14.5M (21% margin) .
  • Customer and cash strength: Active Performance TV customers grew 85% YoY; 97% of customers launching in 2025 were new to TV; cash and equivalents $175M, no debt .
  • Quote: “Our Performance TV software delivers what modern brands need: real outcomes, efficiency, and scale…97% of MNTN customers that launched in 2025 had never advertised on TV before” — CEO Mark Douglas .

What Went Wrong

  • GAAP loss driven by IPO-related items: Net loss of -$26.2M included a ~$23.0M one-time charge related to the IPO and a $26.4M loss on extinguishment of convertible notes .
  • OpEx growth as the company scales: Operating expenses increased to $48.8M (+21% YoY) due to higher technology/dev spend and marketing to support SMB growth .
  • Variability in gross margin expected: Management guided that gross margin may vary quarter to quarter, even as long-term target remains 75–80% .

Financial Results

Year-over-Year Comparison (Q2 2024 → Q2 2025)

MetricQ2 2024Q2 2025
Revenue ($USD Millions)$54.8 $68.5
Performance TV Revenue ($USD Millions)n/a$67.8
Gross Margin (%)70% 77%
Operating Income (Loss) ($USD Millions)-$2.3 $3.7
Net Loss ($USD Millions)-$9.3 -$26.2
Adjusted EBITDA ($USD Millions)$7.6 $14.5
Adjusted EBITDA Margin (%)14% 21%

Sequential Comparison (Q1 2025 → Q2 2025)

MetricQ1 2025Q2 2025
Revenue ($USD Millions)$64.5*$68.5
Gross Margin (%)69.3%*77%
Operating Income (Loss) ($USD Millions)-$2.9*$3.7
Net Income (Loss) ($USD Millions)-$21.1*-$26.2
Diluted EPS (GAAP) ($)-$1.41*-$0.65

Values marked with * retrieved from S&P Global.

Vs. S&P Global Consensus (Q2 2025)

MetricConsensusActual
Revenue ($USD)$64.54M*$68.46M
Primary EPS (Normalized) ($)-$0.057*$0.074*

Values retrieved from S&P Global.

Segment / Mix

MetricQ2 2024Q2 2025
Total Revenue ($USD Millions)$54.8 $68.5
Performance TV Revenue ($USD Millions)n/a$67.8
Other Revenue ($USD Millions)n/a~$0.7 (derived from total minus PTV)

KPIs

KPIQ2 2024Q2 2025
Active Performance TV Customers (YoY growth)n/a+85%
New-to-TV Share of Launching Customersn/a97%
Cash & Cash Equivalents ($USD Millions)n/a$175
Debt Outstandingn/aNone
Inbound Lead Share of Revenuen/a77% (management commentary)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 2025n/a$69.5–$70.5 New
Adjusted EBITDA ($USD Millions)Q3 2025n/a$13.5–$14.5 New
Gross Margin (LT Target)Long-term75–80% target reiterated 75–80% target Maintained
Gross Margin (Near-term cadence)Q3–Q4 2025n/aExpect variability; reductions in hosting costs in Q3/Q4 New color

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2025)Trend
AI targeting/“MNTN Matched”n/a (no public prior earnings materials found)AI-powered MountainMatched cited as growth driver; long-tail SMB penetration Strengthening
Generative AI creative/QuickFramen/aBeta tested 1,000+ AI-generated ads in June; partnerships with Google, ElevenLabs; combining AI tools with creator network Building toward productization
Margin optimizationn/aGross margin at 77%; plan to reduce hosting and media costs; LT target 75–80% Improving with operational levers
Go-to-market and self-serven/aMinimum spend lowered (from $25k to $500); self sign-up expanding and embraced by mid-market; inbound 77% of revenue Faster, more efficient funnel
Partnerships (ZoomInfo)n/aNew ZoomInfo integration to unlock B2B advertisers and drive leads Expanding partner channels
Customer profile (SMB focus)n/aMajority DTC; strongest net retention among smallest SMBs; radius targeting for local franchises Down-market expansion with healthy retention

Management Commentary

  • Strategy: “We’re not chasing the top 1% of advertisers…we’re building the engine for the millions of brands left behind by traditional TV.” — CEO Mark Douglas .
  • Market positioning: “Performance TV is unlocking new growth for advertisers…our financial performance is strong, our market opportunity is expansive…” — CFO Patrick Pohlen .
  • Margin path: “We are underway to reduce our hosting costs…then will turn our attention to media costs…drive us up higher in [the 75–80%] range.” — CFO .
  • Customer momentum: “97% of MNTN customers that launched in 2025 had never advertised on TV before…opening the door to a whole new class of advertisers” — CEO .

Q&A Highlights

  • SMB efficiency and funnel: Management emphasized faster go-to-market post-IPO and high inbound share; self sign-up improving acquisition efficiency across customer sizes .
  • Gross margin outlook: Near-term variability expected; hosting cost reductions in Q3/Q4 and media cost actions to move toward 75–80% LT target .
  • AI creative tools: Beta activity and ecosystem partnerships; plan to combine generative AI with creator network to lower creative costs and accelerate time-to-live .
  • Guidance cadence and organic comparison: Management clarified reported versus organic growth dynamics (Maxim Effort spin-out), and indicated similar deltas for Q3 growth at the midpoint .
  • Measurement and outcomes: Majority of customers optimize to ROAS; sales is top outcome; DTC-heavy base with B2B share growing .

Estimates Context

  • Q2 2025 beat: Revenue $68.46M vs. $64.54M consensus; normalized Primary EPS $0.074 vs. -$0.057 consensus*. Values retrieved from S&P Global.
  • Q3 2025 guide vs. consensus: Revenue guide $69.5–$70.5M brackets consensus at ~$70.11M; EBITDA not in consensus table, but guided to $13.5–$14.5M*. Values retrieved from S&P Global.
  • Note: S&P Global EPS reflects normalized Primary EPS and differs from GAAP diluted EPS (-$0.65) due to one-time IPO-related charges .

Key Takeaways for Investors

  • Strong topline and margin expansion driven by AI-powered Performance TV and SMB penetration; Adjusted EBITDA scaling with operating leverage .
  • Non-GAAP outperformance vs. consensus is a likely positive near-term catalyst; GAAP loss was largely non-recurring IPO-related .
  • Near-term focus areas: hosting and media cost reductions to sustain margin progress; watch Q3/Q4 gross margin cadence .
  • Product catalysts: generative AI creative tools and self-serve motion can lower friction and expand TAM; monitor announcements and adoption in Q3 .
  • Partner ecosystem: ZoomInfo integration should unlock B2B demand; track incremental leads and conversion .
  • SMB momentum: minimum spend reduction and radius targeting enable local/franchise growth; net retention strongest in smallest SMBs .
  • Liquidity and flexibility: $175M cash, no debt provides ample runway to invest in growth and margin initiatives .

Notes:

  • Values marked with * are retrieved from S&P Global.
  • All other figures and quotes are sourced from the Q2 2025 8-K press release and the Q2 2025 earnings call transcript as cited.